Week 3

Evolution of marketing
orientation
Evolution of marketing orientation

Production Selling Holistic

Orientation Orientation Marketing

Product Marketing
Orientation Orientation
Production orientation

 Until the 1950s, organizations

relied on the assumption that
their businesses would be
profitable so long as they
produced high quality
products that were durable
and worked well.
Production
 An easy way to understand this term is to
reference Henry Ford, the original
manufacturer of American cars.
orientation
 Production orientation is a philosophy that
focuses on the internal capabilities of the
firm rather than on the desires and needs of
the marketplace.
Example

 Ford created one

type of car and stated
that the consumer
could have it in any
color as long as it was
black!
Product
Orientation
 Similar to production orientation,
the product orientation of
marketing focuses solely on the
product a company intends to sell.

 This orientation was popular during

the 1950s and into the 1960s.

 A firm employing a product

orientation is chiefly concerned with
the quality of its product.
Product Orientation

A firm such as this would assume that as long as its product

was of a high standard, people would buy and consume the
product.

This approach stresses the research and development of

products and the continuous evolution during their life
cycles, in order to maintain the attention of potential
customers.

Under the product orientation, management focuses on

developing high quality products which can be sold at the
right price, but with insufficient attention to what it is that
customers really need and want.
The premises implicit in this Product
Orientation
Consumers buy products more than solutions.

Consumers are interested in product quality.

Consumers recognize product quality and differences

in the performance of alternative products.

Consumers choose between different products based

on getting the best quality for the price paid.
Disadvantages

 As soon as a competing
company can offer a product
more oriented to the satisfaction
of customers' needs and desires,
the companies undertaking
product orientation will lose most if
not all of its market share.
Selling Orientation

A firm using a sales orientation focuses

primarily on the selling and promotion of
a particular product.

The successful management of the

relationship between the company and
its customers defines the act of sales or
selling. It creates value for
customers. Emphasis is not placed on
determining new consumer desires.
Selling Orientation

Consequently, this entails simply selling an already

existing product and using promotion techniques to
attain the highest sales possible.

Such a modern-day orientation may suit

scenarios in which a firm holds dead stock, or
otherwise sells a product that is in high
demand, with little likelihood of changes in
consumer tastes that would diminish demand.
 Chrysler Ad 1966, Youth
is a State of Mind
Marketing
Orientation
 A marketing-oriented
business starts with the
customer, finds out
what they want, and
then produces it for
them.
 Yes
Is production
orientation
included in Marketing orientation is a business model
marketing that focuses on delivering products
designed according to customer desires,
orientation? needs, and requirements, in addition to
product functionality and production
efficiency (i.e., production orientation).
Will companies achieve profit if
they focus on customers?
 Yes instead of profit from sales customer focus will make companies
achieve their objectives including profit.
 Marketing-oriented companies revolve around
internal business processes that gather,
synthesize, and package market intelligence into
integrated marketing communications programs
(i.e., advertising campaign, new product launch,
promotional offer, etc.).

 Furthermore, it involves a brand planning its

marketing activities around a singular concept --
the customer -- and supplying products to suit
diverse tastes.
 Competitive analysis is also a significant component of market
orientation.

 Generally, companies gather this information using market research,

consumer surveys, and focus groups with prospective customers to
identify needs, preferences, as well as competitor strengths and
weaknesses.
The concept of marketing
orientation is the same as
customer orientation, and
marketing philosophy
 True
What are the components of a
marketing oriented organization?

Customer
orientation

Inter-
Competition
functional
orientation
coordination
Holistic Marketing

 The holistic marketing concept looks at marketing as a complex

activity and acknowledges that everything matters in marketing.

 The holistic view point follows that systems, in this case marketing
somehow function as wholes and that their functioning cannot be
fully understood solely in terms of their component parts.

 Therefore, a broad and integrated perspective is necessary in

developing, designing, and implementing marketing programs and
activities.
Components that
characterize holistic marketing:
 Relationship marketing.
 Internal marketing.
 Integrated marketing.
 Socially responsive marketing.
Relationship marketing

 Relationship marketing emphasizes customer retention and

satisfaction rather than a dominant focus on sales transactions.
Integrated marketing

 Integrated marketing is an approach to brand communications

where the different modes work together to create a seamless
experience for the customer and are presented with a similar tone
and style that reinforces the brand’s core message.
Socially responsible marketing

 Socially responsible marketing is a marketing philosophy that states

a company should take into consideration what is in the best
interest of society in the present and long term.
Internal marketing

 Internal marketing is a process that occurs within a company or

organization whereby the functional process aligns, motivates, and
empowers employees at all management levels to deliver a
satisfying customer experience.
 Socially responsible marketing concept focuses
on other stakeholders, as well as the business and
its customers. Need to balance 3 items
Categories of products
 Kotler identified four categories of products, classified in terms of
long term benefits and immediate satisfaction:
Desirable products, which combine long-
run benefit and immediate satisfaction

Salutary products, which bring low short

term satisfaction, but benefit the society on
the long run

Pleasing products, which bring a high level

of immediate satisfaction, but can cause
harm to the society in the long run

Deficient products, which bring neither

long-run or short term benefits